Certified Regulatory Compliance Manager (CRCM) — Question 183

Under Unauthorized transfers-12 CFR 205.6 prerequisites for consumer liability are all of the following EXCEPT:

Answer options

• A. If an access device was used, it must have been an accepted access device
• B. Institution must have provided a means of identifying the consumer to whom the device was issued (for example, by electronic means (PIN), photograph, or fingerprint)
• C. Increased liability for the consumer
• D. Institution must have provided the following in writing to the consumer "¢ A summary of consumer's liability for unauthorized transfers "¢ Telephone number and address of person or office to be notified "¢ in case of unauthorized transfer "¢ Institution's business days

Correct answer: C

Explanation

The correct answer is C because increased liability for the consumer is not a prerequisite for consumer liability under these regulations. Options A, B, and D outline necessary conditions that must be met by institutions to establish consumer liability for unauthorized transfers.